Retirement was once a hard-earned rite of passage for most Americans. However, in modern times, as many working Americans struggle to make ends meet, it’s not always an option. And, outside of financial concerns, more individuals’ sense of purpose appears to be deeply connected to working. That means that for many, retirement is no longer a given, and for some, it’s not desirable.
Asset Preservation Wealth & Tax surveyed 1,000 working Americans age 65 to 99. According to the research, 51% of respondents said they planned to continue working indefinitely. “This isn’t too surprising considering the cost of living is on the rise,” the report explained. “Many seniors struggle with financial insecurity or fear of outliving their retirement savings.” Those with major healthcare costs or other financial stressors are the most concerned, the report noted.
Financial concerns are certainly plentiful today, especially for older working Americans. From high costs of living to worries about the fate of social security, it makes sense that adults are retiring later, or not at all. A 2022 Gallup survey found that on average, Americans are working around four years longer than they did in the 1990s, from an average age of 57 in 1991 to 61 at the time of the survey.
According to the Asset Preservation Wealth & Tax survey, 48% of respondents say they will continue working due to financial necessity. “Our survey also found that just 34% of people feel financially prepared for retirement,” the report explained. “Another 32% do not feel prepared at all, while 34% only feel somewhat prepared. Along with this, 85% of respondents said that financial considerations somewhat or strongly influenced their decision to work past the standard retirement age.”
In addition to their own financial concerns, many older workers are supporting other family members, such as grown children. One in five said they are supporting or supplementing children or other family members who do not live with them. And according to a recent Savings.com survey, parents are shelling $1,474 monthly to help their adult children. Therefore, retirement may no longer be a personal choice, but one that may have generational impacts.
Still, the shift away from retirement isn’t entirely financial. It’s also related to concerns about physical and mental health. According to the Asset Preservation Wealth & Tax survey, many Americans want to continue working as a means of supporting cognition and overall wellness. Forty percent of those surveyed said that even if they had no financial need to continue working, they still would prefer to in order to stay physically and mentally well.
And for many, work is central to their sense of identity, which makes retirement an emotional choice. Almost 70% (68%) said that working gives them purpose and 55% said having a job makes them feel valued in society.
While there are clear financial incentives that are keeping many Americans employed longer, work is also closely connected to a sense of purpose, identity, and therefore, to mental health. So, for some, giving it up—at any age—no longer feels like a reward, but a punishment.
